Green Finance Advisor of Friends of the Earth (HK)
Climate litigation, after years of development, is showing promising results globally, offering hope to climate activists that polluters might finally be held accountable.
In the United States, the Vermont case[1] represents a bold step towards holding fossil fuel companies financially responsible for climate damages. It seeks to recover costs for infrastructure damage, economic losses, and public health impacts caused by climate-related events. Similarly, the Puerto Rico government filed a lawsuit alleging that the fossil fuel industry engaged in campaigns misleading consumers and the public about the impact of fossil fuel emissions.[2] This lawsuit seeks compensation and remedies that could cost the oil and gas companies billions. Notably, similar lawsuits against fossil fuel companies are filed in California, Connecticut, and other states.
A joint-staff report released in April 2024 by the US House Committee on Oversight and Accountability and the Senate Budget Committee exposed the fossil fuel industry’s deceptive commitments to reduce emissions.[3] The report, the culmination of a three-year investigation, uncovered misleading statements about the alleged climate safety of natural gas, false promises on new technologies, and obstruction of investigations. These findings, alongside other documents, reveal that the oil and gas industry acknowledged the climate impact of fossil fuels as early as the 1950s[4], a stark contrast to the denial of major oil companies about climate change.
The evidence uncovered in the US investigation could strengthen climate litigation efforts not only domestically but also internationally. In Europe, the Paris Court of Appeal accepted a case brought by NGOs and local authorities against an oil company.[5] This case challenges the company’s failure to adequately report climate risks and take action to mitigate them, reversing a pre-trial decision to dismiss the case. This landmark case could pave the way for an unprecedented climate trial against the oil giant under the “Duty of Vigilance” law. Additionally, this oil company faces other legal challenges, including a recent criminal case filed against its executives and directors.[6] Individuals and NGOs argue that these executives, through their decision-making roles, are personally responsible for the company’s contribution to climate change and subsequent deaths caused by extreme weather events.
While the success of these climate lawsuits remains uncertain, they represent a powerful wave of action. These cases bring the climate crisis to the forefront of the legal system, challenging the longstanding impunity enjoyed by the fossil fuel industry. By holding individuals accountable, these lawsuits aim to dismantle the corporate shields that have protected the industry from bearing the full weight of their actions and push for meaningful change in the fight against climate change. Similar to the tobacco lawsuits, which ultimately led to the Master Settlement Agreement[7], these cases have the potential to reshape the energy landscape, forcing the industry to take responsibility for its actions and accelerate the energy transition to a sustainable future.
While the oil industry has been able to delay and deflect responsibility for decades, the legal landscape is shifting. The momentum for accountability is growing, fuelled by increased awareness of the climate crisis and its devastating impacts. Climate lawsuits could be the catalyst for a fundamental shift in the relationship between the fossil fuel industry and society. Just as the tobacco lawsuits ultimately led to a decline in smoking rates, these climate lawsuits could pave the way for a future where the oil industry is forced to prioritize sustainability over profits, ushering in a new era of clean energy and a healthier planet.
[1] Vermont becomes 1st state to enact law requiring oil companies pay for damage from climate change, AP
[2] Puerto Rico Sues Oil Companies for $1 Billion in Climate Damages
[3] Denial, Disinformation, And Doublespeak: Big Oil’s Evolving Efforts To Avoid Accountability For Climate Change
[4] Defense, Denial, and Disinformation: Uncovering the Oil Industry’s Early Knowledge of Climate Change .
[5] In First Rulings, New French Climate-Focused Appeals Chamber Says Big Energy Companies Must Face NGO Complaints
[6] Climate activists file criminal complaint against TotalEnergies in Paris
